Yes, and that's 25% more bandwidth that could be used to improve audio quality.
You're right -- the argument that it is okay to waste bandwidth on
cartoons, just because it is the result of implementing H/M, is
absurd.
This cartoon nonsense is a quid-pro-quo for Chrysler -- DCX said,
"Sure, we'll factory install your radios, if you'll give us backseat
video!"
There is no money in it. No business model for it. It is an
absolutely dumb way to use the bandwidth, and will never, ever be
profitable (if you can't make in-car entertainment for the front seat
pay, you sure as hell can't make it pay for the back seat, which is
empty 90% of the time).
It is just one more stupid commitment SIRI has made (up there with NFL
and Stern) to try and get subscribers which leaves it at a terrible
disadvantage after the merger fails.